Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

What Is a Cash Discount? A cash discount is a small price reduction that a seller offers to buyers who pay before the due date, encouraging prompt payment. This practice helps sellers improve cash ...

Over the years, Warren Buffett and Charlie Munger have articulated an approach to discounting at odds with academic finance. Buffett and Munger eschew complicated math and spreadsheets in favor of ...

Discounted Cash Flow analysis is one of the primary valuation methods. Seeking Alpha authors should understand the strengths and weaknesses of a DCF model and best practices. Here we look at resources ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...